Review of Quantitative Finance and Accounting

, Volume 49, Issue 4, pp 925–948 | Cite as

The impact of firm ownership, board monitoring on operating performance of Chinese mergers and acquisitions

  • Agyenim Boateng
  • XiaoGang Bi
  • Sanjukta Brahma
Original Research


In this paper, we employ board monitoring mechanisms and within-firm governance variables to investigate the operating performance of 340 mergers and acquisitions in China over the 2004–2011 period. Our results document a significant deterioration in post-acquisition operating performance of acquiring firms over 12–36 months. We find independent directors, managerial shareholding, ownership concentration have a positive and significant impact on operating performance of acquiring firms. However, the related party transactions exert a negative and significant effect on matched control adjusted ROA. Further analysis of our sub-sample indicates that privately owned enterprises are better monitors compared to the state owned enterprises.


Firm ownership Monitoring Mergers and acquisitions Performance 

JEL Classification




The authors would like to thank Professor C-F Lee, the Journal’s editor, and the two anonymous reviewers for their insightful comments. We also acknowledge the financial support from National Natural Science Foundation, Zhejiang, China: project ID: LQ12G020025.


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Copyright information

© Springer Science+Business Media New York 2016

Authors and Affiliations

  1. 1.Department of Economics, Finance and Risk, Glasgow School of Business and SocietyGlasgow Caledonian UniversityCowcaddens, GlasgowScotland, UK
  2. 2.Nottingham University Business SchoolUniversity of NottinghamNingboPeople’s Republic of China

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